Frontier Airlines and First Data have announced "an agreement with respect to the continued processing of Frontier's Visa and MasterCard charges without any interruption. The agreement provides First Data with appropriate protection for continuing its processing work for customer credit card purchases on a "business as usual" basis."

"Today's announcement is another important step as we navigate the Chapter 11 process," said Frontier President and CEO Sean Menke. "The terms of the agreement are fair and reasonable to both parties, and we appreciate First Data's ongoing cooperation."

"We are pleased to have come to an agreement with Frontier and will continue to work closely with them through this process," said Ed Labry, president of First Data's USA division.

Frontier is expected to file a motion with the Federal Bankruptcy Court in New York to approve the agreement in the next few days.